The end of the Great Keynesian Experiment is upon us. Prepare accordingly.

Tuesday, January 4, 2011

Support Levels

Well, this is thoroughly disgusting. Trust me, I'm as pissed off as you are. When the EE raided the metals on the Globex yesterday, it signaled their intentions to hammer it today. I'm surprised, however, that they've been able to beat things down as far as they have.

Most important now are support levels. The March11 contract should have terrific support between 29.50 and 29.30. If you wanted to do some dip buying, I would expect the BoS to emerge from the shadows once we enter that region. In gold, the long-ago highs of 1372 and then 1365 should be rock solid.

This really sucks but we've seen this happen so many times now that I kind of just shrug my shoulders when it happens. Hang in there. Everything is still headed higher.
The only real offense we have is to buy physical and take delivery. Blythe can continue to play her games but if we slowly acquire all the physical, we will win.

Finally, this is a critical excerpt from "Turd's Glossary", which was written on a Sunday back in early December when things looked just as rosy as they did this past Sunday. Keep the faith. Liars and cheaters may steal a few battles every now and then but they will not win the war. Trust will prevail!

"On to the PMs. Everything, and I mean everything, looks great for the PMs as we head into this week. From the charts to the fundos to the chatter, it appears to be "all systems go" for liftoff. Therefore, you should be nervous. It is in times like these when the EE often counter attacks. Just look back four weeks ago for your latest example. The Fed announced QE2 on 11/3 and, by 11/9, the dollar was diving and the PMs were soaring with no conceivable end in sight. Well, we all remember what happened next. Out of the blue, we get margin requirement increases and a sharp correction in price. Silver shed $4.30 in a week and gold lost $95! None of the fundos changed, however, and we've since recovered. If you don't think that the EE has more tricks up their collective sleeves, you're living in FantasyLand. They may hit us again this week or they may not but hit us again they most certainly will. Be cautious and you'll make a lot of money in this market. Get greedy and you'll be wiped out faster than the free booze at the company Christmas party."

The connections are everywhere and our government has been compromised by the very thing that is destroying our country.

We must end all of this corruption. Soon, Ron Paul will announce his presidency for 2012. He has continuously acknowledged that he is apart of a revolution and I wholeheartedly agree. He wants to legalize gold and silver RIGHT NOW to help phase out the federal reserve note.

Ron Paul has been advocating buying gold for the last 40 years, as he has personally invested in it at 35$ an ounce as a result of the breakdown of the Bretton Woods agreement which has pretty much dooomed the dollar to what we have now.

This has been 40 years in the making for this economic cycle. The only reason Blythe would knock it down this low is because of something very big looming. We all know the Asian Markets are going to buy this all up in the night. Could the slapdown be a result of the Federal Reserves minutes it is releasing in 45 minutes at 2PM est which outline the discussion around QEII meeting in December?

If you would like to learn more about what Ron Paul stand for and why I believe he is the best opportunity America has to get out of this shitstorm alive... please visit

In the UK, The Royal Mint (which defines the top-end pricing of UK coins, including a wide buffer so they can keep their prices steady) raised their prices today, so they are likely pricing in an expectation of further increases.

The increase in UK sales tax today, warranted a £0.64 rise in the one ounce silver Britannia, but it went up £2.80 from £30.00 to £32.80.

The gold sovereign, which is not subject to sales tax anyway, went up anyway, from £255 to £269.

The other UK suppliers either track spot, or discount from the Mint's prices, but the pricing moves of the Mint are always of interest here.

with you all the way on that TF I been buying all day on the drops and am surprised they got down to 1378 and I am still buying in gold and silver. I now have alot of positions underwater but they're not losses theyre the money I will make on the rebound. I'm both disgusted and pleased, volatility is the traders friend. we won't have to wait long till we're back up challengeing new all time highs.

TF: Is this a blip to allow Carlos Slim to get a nice entry point and to politically insulate the QE policy while the Fed is meeting, or do you think this might be foreshadowing a market-wide double dip that will take PMs with it, at least for a little while?

Also, are the political ramifications of the Reps taking office (esp. w/r/t the debt ceiling) threatening the prospects for, or the potential amount of, ongoing QE?

See my spreadsheet to keep a running tab on March Silver open interest and volume. Volume was up a lot today, of course. Open interest for March, 2011 silver increased 577 contracts basis yesterday, to 78,658. At this time tomorrow I'll update my spreadsheet. Personally, I am expecting that the open interest increased today, counter to the effect that Blythe is trying to create. All we need is some buyer of size to stand in March for 10,000 contracts and the COMEX registered inventory will be wiped out.

Indeed....Turd. Congress is about as useful as a bottle of water is to put out a forest fire. JPM owns most if not all of the Congress so who would dare stand up to them.

I'm beginning to wonder about Ron Paul. He will attempt to end the fed, but isn't this what JPM really wants in the long run? Look at the big picture. None of them are fighting the Global currency movement. In fact by their behavior, it seems as if they are pushing harder to get us there. If the Fed goes under, it plays right into their hands. JPM is a huge part if not the majority of the IMF, so why not get rid of the Fed?

Just something to think about. Soon enough we will be trading with SDRs.

I don't understand why you are upset. This is a healthy pullback for long term stackers. I like your blog but you should check out a little TA before gnashing your teeth when the the macro cycles fractal down to weekly cycles.

Chris: Maybe long-term TA explains everything. I could certainly be wrong and it wouldn't be the first time. However, it could also be that a desperate EE is trying to scare as many weak-handed longs as possible in an attempt to drive price back down from yesterday's $31.

It is days such as today that keep newbie physical buyers from pulling the trigger on their purchasing of silver. Nothing I can say seems to convince them that even though the market is RIGGED to the MAX, (which scares the shit out of people) that ultimately an investment today will be the best move. Those of us that understand the big picture actually relish these days as much as we curse JPM. The psychological attachment to fiat money is so ingrained in all of us that few escape and come to realize the true/real value of PM's. When "they" finally wake up to the game, the price will be so high and the shortages so deep that the game will be over for them...that is painful for me, but I am only one man's opinion in their minds, yet they continue to slay the messenger.

Silver's flashed bullish move is because the wires just came out and said the Fed doesn't think the "recovery" is strong enough for them to discontinue QE2 at this time. Amazing! They can have their cake and eat it, too! So they tell us the economy is recovering, but still are doing QE2! Of COURSE the economy is recovering, ROTFLMAO! (sarcasm off). For example, GM reports a 16 percent sales increase, but zerohedge debunks that showing it was all inventory stuffing. In other words, the dealer's lots just got a lot fuller..

Best deal on ebay is 90% silver coins... and sometimes 100z bars too. A local coin dealer sold me Maple Leafs today for $31 each cash. And there are fair deals on craigslist for spot price pretty often too.

TPTB are just trying to re-establish contorl, after the metals jumping up like that while the bankers were on vacation. The interests who want to keep PMs low go beyond JP Morgan... Central Banks the world over don't like seeing silver & gold go high.

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"Turd Ferguson" has been involved in the securites "industry" for over 20 years. He first received his NASD licenses in June of 1990. Ultimately disgruntled by the fraud known as "financial planning", he retired to a career as a serial entrepreneur in 2008. The Turd is NOT a soothsayer, a psychic or a witch. After all these years, he simply has a decent handle on the PM "markets". You can reach The Turd by email at tfmetalsreport@gmail.com. If you are polite and not an AGA, he will probably answer you in short order.

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